Daily Digest

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Daily Digest 9/4 - America's Debt Rattle, To Cook or Not to Cook?

Thursday, September 4, 2014, 8:54 AM

Economy

Debt Rattle: This Is As Big As We Will Get (Don R.)

Japan may be the worst of the basket cases. We don’t see everything there is to see yet, since the Tokyo spin machine is perhaps the best asset the country has left. But there can be no doubt that Abenomics is going to turn out brutal. And for many Japanese already has. The last straw will be the GPIF, world’s largest pension fund, switch to stocks just ahead of a giant stock market crash. Then there’ll be nothing left.

In Mandrake We Trust? (Adam)

Later, in the late 1960s, Europeans started trading-in exchangeable, gold-backed US$s for gold, as they realized the Treasury was, once again, over-printing. The U.S. Treasury was caught in another colossal and calculated fraud.
To stop the outflow of gold from the U.S. Treasury, President Nixon ended the illusion of a gold standard by ending US$ convertibility into gold in 1971, thereby letting the US$ “float.”

Precious Metals And Internationalization Are The Antidote To The Keynesian Endgame (Taki T.)

he debt situation has spiraled out of control, according to some market observers. Mr. Grass points out that the debt levels in the financial system, represented as “total US Dollar credit” by the red line in one of the following charts, is clearly decoupled from the real economy. Our current monetary system induces credit, although the marginal effect keeps on decreasing exponentially. Moreover, looking at the following chart on the left-hand side, according to Ray Dalio’s debt model, it appears we are close to the end of a long-term debt cycle. It is likely that we will see deflationary shocks in the (near) future. Most likely, central banks will continue to fight these problems by creating even more debt which probably lead to hyperinflation at a certain point in the future. A deflationary collapse becomes more likely the more the system is centralized.

The 'God' Of Oil Trading Warns America's Shale Boom Will Fizzle And That Oil Prices Will Hit $150 (Adam)

More recently, as oil price growth has stalled, Hall's trades have come up short, Bloomberg's Bradley Olsen writes. Assets under management at his Astenbeck Capital Management LLC hedge fund firm fell as much as 29% to $3.4 billion this May from 2013.

But Hall, who also remains CEO of Phibro, a trading unit Occidental Petroleum bought from Citi in 2009, is unfazed by the losses. Despite America's massive shale oil boom, Hall is convinced prices will rise.

Former US Ambassador: To Resolve Ukraine Crisis, Address Internal Divisions & Russian Fears of NATO (HughK)

And one can, you know, talk all one wishes about how impermissible it is for Russia to intervene, but the fact is they are going to intervene until they are certain that there is no prospect of Ukraine becoming a member of NATO. And all of the threats by NATO and so on to sort of increase defenses elsewhere is simply provocative to the Russians.

Scientists Create Completely Renewable Propane (James S.)

A team of British and Finnish scientists have figured out how to make small amounts of propane using Escherichia coli (E. coli), the naturally-occurring, diverse group of bacteria most commonly known for causing food poisoning symptoms when ingested.

The propane, created from a genetically engineered version of the bacterium, is completely renewable and could be ready for commercial production within 10 years, according to the team, which published a study on the discovery Tuesday in the journal Nature Communications. The propane can be used the same way regular propane is used — for furnaces, outdoor grills, and to make liquefied natural gas — except instead of being derived from fossil fuels, it would be derived from a renewable source.

To Cook or Not to Cook: The Question of Heterocyclic Amines (Eric G.)

Several HCAs are either documented or suspected carcinogens in humans, and can form adducts on DNA that can cause mutations or other genetic damage. Evidence linking HCA consumption to specific types of cancer is mixed, with some studies finding links while others fail to do so. This isn’t surprising, given how challenging it is to collect adequately detailed – and accurate – epidemiological data on a large enough sample of people to yield meaningful results. Nonetheless, some of the more recent, and better designed, studies have convincingly linked HCA consumption with cancers of the colon, prostate, lung and breast, among others. One study that failed to find a strong overall correlation between HCA consumption and cancer seemed to contradict itself by noting that, among its participants, those with the highest recorded levels of HCAs were individuals who suffered from cancers of the colon, bladder and kidneys.

The 33 Things to Eat, Drink, See, and Do Before Climate Change Ruins Everything (jdargis)

The Kennedy Space Center, the launch site for the Apollo missions and every other manned space flight over the past 45 years, is just as endangered as the rest of the U.S. space program. The popular tourist attraction sits at the water’s edge on Cape Canaveral. Elevation: between six and 10 feet above current sea level, in the danger zone as oceans expand over the next 45 years. Other NASA outposts are just as threatened. “Retreat is the way to go here,” says a member of NASA’s climate-impacts team at Langely Research Center in Virginia.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/3/14

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

7 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Slow motion disaster

Sea level rise affecting coastal communities - focus on mid-Atlantic in the US.

http://www.reuters.com/investigates/special-report/waters-edge-the-crisi...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2765
Argentine Senate passes bill to put debt outside U.S. reach

Argentine Senate passes bill to put debt outside U.S. reach

Guess we will be bringing freedom and democracy to Argentina soon...

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2765
Russian General Calls for Preemptive Nuclear Strike Doctrine

Russian General Calls for Preemptive Nuclear Strike Doctrine Against NATO
 

It's a MAD, MAD world

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Knot in my stomach...

There was a line in the above article "Debt Rattle" that really struck me...especially when it dawned on me that it is likely true. The author said when referring to the growth of the global economy, "To say that this is it, and we won’t grow any bigger, is not just some spurious remark. The world economy hasn’t actually grown for decades, other than through debt."

I'm still trying to rape my head around that statement. My initial feeling gave me a knot in my stomach and a slight feeling of panic! 

Does that statement make anyone else feel that way?

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Debt curdling.

Having read TAE's Debt Rattle this is how I visualize the future of world wealth. It cannot grow, but it can curdle.

Things to notice. Bright shining warm interconnected substance and dark cold isolated voids.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060

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